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I love how you throw out your numbers. How about 80 for water, 200 for electricity, 0 for a pool, how about 0 for a landscaper (desert landscape) how about use coupons and eat healthy? 100 a week..... for groceries... Just saved 350 a month!
$1100 is now $1450..... what will I ever do? And that's based off of you 5k, not my 6k
Cars a definitely paid for....at least for the person who knows how to pick his own weeds and clean his own pool.
Fine but I wouldn't call picking weeds, couponing, living in the desert without a pool and looking at a backyard full of rocks, living well. It's surviving.
Well, I've always had a simple view on money and what's the "right" amount to live on and that's one is truly wealthy when one has enough money to do all the things they want to do in life. I've known people who tell me "they can't make it" on making $300k a year, even living in a lower cost area. Many are very content on making much less. My grandmother was someone who lived on very little money her entire life and was one of the most happiest/friendliest people I've ever had the pleasure to know.
This is an interesting study from Princeton on the topic:
"People say money doesn't buy happiness. Except, according to a new study from Princeton University's Woodrow Wilson School, it sort of does — up to about $75,000 a year. The lower a person's annual income falls below that benchmark, the unhappier he or she feels. But no matter how much more than $75,000 people make, they don't report any greater degree of happiness."
So for the $100k salary number kicked around here for someone living in Scottsdale, all else being equal, the odds are that person should be very happy.....if they live within their means.
Nothing is better than pizza and a movie on Friday night with the family, although some people need Steak 44 all of the time.
Your grandmother is the type of person I patterned my life after, not just financially. I bet she is/was wise with her life's philosophy as well. Finding acceptance from within and working hard; not wasting money or food. Being happy with the simple things instead of the "finer" things. Putting family first and not the need of impressing others. Taking and using what you need.
Some people get it, some people don't. I know VERY wealthy people who are unhappy and don't have enough money no matter how much they make.
Fine but I wouldn't call picking weeds, couponing, living in the desert without a pool and looking at a backyard full of rocks, living well. It's surviving.
Using coupons is a bad thing?....OMG!!!!!!! Picking weeds is good exercise and therapeutic, I love it, plus it gives you a sense of pride and taking care of your own....wow?! How hard is it to clean a pool and some people don't swim
Using coupons is a bad thing?....OMG!!!!!!! Picking weeds is good exercise and therapeutic, I love it, plus it gives you a sense of pride and taking care of your own....wow?! How hard is it to clean a pool and some people don't swim
Again that's what you need....
Edit: no offense, but you sound lazy as hell.
He's not saying you can't live on 100K, you changed your argument from being able to afford a $400K mortgage at $2300/month to being able to live well at $100K. Fact of the matter is, $2300/month in mortgage on $5000/month net pay is 46% going to housing (without even considering HOA dues, maintenance and repairs). That is crazy. And I know that the $5K number is closer to correct than your $6k, because I distinctly recall my wife making ~$122K several years ago (2009ish) and her take home was just barely over $6K/month after deductions (401K max was less then, too). So your numbers are definitely off.
Your budgeting is ultra conservative. We pay about $1,400/month in daycare, which is down from being above $2,200/month when they were younger. Youth sports, clothes, cleats, shoes, uniforms, equipment, etc add at least $150/month. Food can be done at $100/month possibly but we usually spend another $200/month at Costco. Just booked Legoland to the tune of $2,000, Disneyland will be around $4,000 later this year, nothing extravagant. We have nice cars (paid for), but should also budget to save for cash for the next purchase and/or repairs which you don't account for. Utilities at $200/month is ridiculous if you actually have a pool, I run my business out of my house, thus have larger utility bills due to being home all day. Where is the money for dental/medical co-pays for your entire family? Do you ever freshen up your work wardrobe? Ever need to replace a water heater, refrigerator, HVAC, repair a leaky roof, etc? Ever make charitable donations? We give to the Childrens hospital and to my sons school every year. Sporting events? We pay $2000/year for football tickets (maybe this is a slight "luxury" but I just consider it living well).
I just don't think your numbers are based in reality, without even accounting for any extravagant luxuries such as more exotic trips or expensive dinners or expensive items.
He's not saying you can't live on 100K, you changed your argument from being able to afford a $400K mortgage at $2300/month to being able to live well at $100K. Fact of the matter is, $2300/month in mortgage on $5000/month net pay is 46% going to housing (without even considering HOA dues, maintenance and repairs). That is crazy. And I know that the $5K number is closer to correct than your $6k, because I distinctly recall my wife making ~$122K several years ago (2009ish) and her take home was just barely over $6K/month after deductions (401K max was less then, too). So your numbers are definitely off.
Your budgeting is ultra conservative. We pay about $1,400/month in daycare, which is down from being above $2,200/month when they were younger. Youth sports, clothes, cleats, shoes, uniforms, equipment, etc add at least $150/month. Food can be done at $100/month possibly but we usually spend another $200/month at Costco. Just booked Legoland to the tune of $2,000, Disneyland will be around $4,000 later this year, nothing extravagant. We have nice cars (paid for), but should also budget to save for cash for the next purchase and/or repairs which you don't account for. Utilities at $200/month is ridiculous if you actually have a pool, I run my business out of my house, thus have larger utility bills due to being home all day. Where is the money for dental/medical co-pays for your entire family? Do you ever freshen up your work wardrobe? Ever need to replace a water heater, refrigerator, HVAC, repair a leaky roof, etc? Ever make charitable donations? We give to the Childrens hospital and to my sons school every year. Sporting events? We pay $2000/year for football tickets (maybe this is a slight "luxury" but I just consider it living well).
I just don't think your numbers are based in reality, without even accounting for any extravagant luxuries such as more exotic trips or expensive dinners or expensive items.
5k per month was his number. My number was 6200 to begin with. But he wants to put it all into savings and leave nothing for living just to prove a point....which he cannot do.
I used 2000 a month to represent financing the entire 400k...not 320k (which is what you'd be financing) just for argument sake.
You and your buddy can go back and forth all you want with your fancy trips and extravagant vacations, bottom line is anyone with half a brain could afford a 400k house and live happily on 100k a year in Phoenix on today's dollar....PERIOD.
5k per month was his number. My number was 6200 to begin with. But he wants to put it all into savings and leave nothing for living just to prove a point....which he cannot do.
I used 2000 a month to represent financing the entire 400k...not 320k (which is what you'd be financing) just for argument sake.
You and your buddy can go back and forth all you want with your fancy trips and extravagant vacations, bottom line is anyone with half a brain could afford a 400k house and live happily on 100k a year in Phoenix on today's dollar....PERIOD.
See, you're wrong. The ACTUAL cost on a $400,000 mortgage PITI is around $2,300, not $2000. The OP was talking about 5% down, not 20%, so that may be part of the confusion. And Detroit was not putting money into 401K and healthcare to prove a point, he did so because it is the smart and responsible thing to do. You think having $2,700/month left after simply paying the mortgage with ALL the other expenses I mentioned is easy and you can live well, I showed you that is incorrect. A person taking home $5,000/month should pay no more than $1,500/month on a mortgage IMO and even then could not afford a lot of extravagant trips without carefully budgeting elsewhere.
As to calling my Legoland and Disneyland vacations extravagant? Pinch me I must be dreaming
He's not saying you can't live on 100K, you changed your argument from being able to afford a $400K mortgage at $2300/month to being able to live well at $100K. Fact of the matter is, $2300/month in mortgage on $5000/month net pay is 46% going to housing (without even considering HOA dues, maintenance and repairs). That is crazy. And I know that the $5K number is closer to correct than your $6k, because I distinctly recall my wife making ~$122K several years ago (2009ish) and her take home was just barely over $6K/month after deductions (401K max was less then, too). So your numbers are definitely off. First it is household income not individual...joint return....for a family of four. Your number is off
Your budgeting is ultra conservative. We pay about $1,400/month in daycare For argument sake....the 100k family has kids that are 10 and 12 no daycare, which is down from being above $2,200/month when they were younger. Youth sports, clothes, cleats, shoes, uniforms, equipment, etc add at least $150/month. LOL!! You buy these things monthly?? I coach and teach....please..your kids must be in the NBA or NFL. Food can be done at $100/month possibly but we usually spend another $200/month at Costco. Just booked Legoland to the tune of $2,000, Disneyland will be around $4,000 later this year, nothing extravagant. Cool. We did Disneyland and Sea World for a week last year $2000 including hotel, tix and food. My bad, we used a cooler when we drove each way to save a little money, how dumb a poor of us....you got jipped! We have nice cars (paid for), but should also budget to save for cash for the next purchase and/or repairs which you don't account for. What are all of the saving for? Utilities at $200/month is ridiculous if you actually have a pool, I run my business out of my house, thus have larger utility bills due to being home all day. I have auto thermostat....not home all day...again jipped! Where is the money for dental/medical co-pays for your entire family? How bad are your teeth or insurance or health? Spent 1200 total...just barely, My wife used the ADP prepay. Do you ever freshen up your work wardrobe? Ever need to replace a water heater, refrigerator, HVAC, repair a leaky roof, etc? Ever make charitable donations? We give to the Childrens hospital and to my sons school every year. Sporting events? We pay $2000/year for football tickets (maybe this is a slight "luxury" but I just consider it living well).
I just don't think your numbers are based in reality, without even accounting for any extravagant luxuries such as more exotic trips or expensive dinners or expensive items.
See, you're wrong. The ACTUAL cost on a $400,000 mortgage PITI is around $2,300, not $2000 at what rate and how much financed? Lets be specific, no reason to argue that...it is math. The OP was talking about 5% down, not 20%, so that may be part of the confusion. And Detroit was not putting money into 401K and healthcare to prove a point, he did so because it is the smart and responsible thing to do. You have to put a percent in....which differs for everyone. He was using a large number that he pulled out of his hat. You think having $2,700/month left after simply paying the mortgage with ALL the other expenses I mentioned is easy and you can live well, I showed you that is incorrect. How? When? We are talking about a relative term....living well A person taking home $5,000/month should pay no more than $1,500/month on a mortgage IMO and even then could not afford a lot of extravagant trips without carefully budgeting elsewhere. Again, I based the original take home at 6k
As to calling my Legoland and Disneyland vacations extravagant? It's extravagant if you spent 6k combined to go to a SD and Anaheim amusement parkPinch me I must be dreaming
Can I be your travel agent? I can send you to Castle and Coasters for only $1800 dollars I hate to see what you'd spend on a real vacation.....
Read your own link, brother. They have housing expense at 34%, your example was at 46%. If someone taking home $5000/month spent 34% on housing, that would be $1,700. That is an average, and as we know people on average do not save very much and are typically poor with money management. But still MUCH less than what you say people can easily afford.
Can I be your travel agent? I can send you to Castle and Coasters for only $1800 dollars I hate to see what you'd spend on a real vacation.....
Well we are staying in suites in hotels located at the park. Then again we don't make $100K as a family, but 3.5+ times that much. I suppose I could have saved $700 total staying at the HoJo but it's still a big expense regardless. I think we pre-paid for 1 meal in those totals too
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what will I ever do? And that's based off of you 5k, not my 6k
....you got jipped! We have nice cars (paid for), but should also budget to save for cash for the next purchase and/or repairs which you don't account for. What are all of the saving for? Utilities at $200/month is ridiculous if you actually have a pool, I run my business out of my house, thus have larger utility bills due to being home all day. I have auto thermostat....not home all day...again jipped! Where is the money for dental/medical co-pays for your entire family? How bad are your teeth or insurance or health? Spent 1200 total...just barely, My wife used the ADP prepay
